|
|
 |
 |
| Sunday, 29 September 2002 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
Prima poised to become prime player in S. Asian food market Prima Ceylon Ltd. (PCL), the biggest foreign investment project in Sri Lanka to date, celebrated its 25th anniversary last week. Established in 1977 on a Build-Operate-Transfer (BOT) basis, it is poised to become a leading food manufacturer in South Asia. The cumulative investment made in Sri Lanka by the Prima Group during the past 25 years is estimated at US$ 231 million, said a company spokesman. Prima's initial investment in the island was US$ 54 million. It built the world's largest flour mill under one roof in Trincomalee within 32 months. This large investment made in stages was to ensure that the technology of the flour mill is constantly upgraded and expanded in addition to strategic diversification into new and related industries to meet the growing consumer needs of Sri Lankans. The single mill concept with large economies of scale was a key factor for PCL's success in providing economically produced flour to the Sri Lankan Government. Under this operating concept, Sri Lanka was able to benefit from Government-to-Government wheat aid of more than US$ 800 million. The original capacity of the mill was 1,850 metric tons of wheat flour per day, which has now expanded to 2,500 metric tons, with the fully integrated mill served by a transport network of road, rail and sea. Prima diversified into the feed business in 1982 by setting up a modern feed processing plant by incorporating Ceylon Grain Elevators, which has invested US$ 45 million to date. This company was instrumental in adding value to the animal feed industry and raising the quality of the livestock industry. Prima's confidence in Sri Lanka further improved in 1992 and it invested US$ 20 million on Ceylon Agro Industries to launch a state-of-the-art noodles and poultry processing plant. This reinforced Prima's position as a household name in Sri Lanka that served the nation with quality and value for money products. Prima's commitment to Sri Lanka was further cemented in April 2001, when the PCL was converted from BOT to a Build-Own-Operate agreement which saw a further investment of US$ 65 million. This was also in line with the Government's policy of fully liberalising the flour milling industry, which Prima saw as an opportunity to further pursue excellence in meeting the nation's needs. Prima's confidence in Sri Lanka's investment climate and growth encouraged the company to invest an additional US$ 30 million this year, double the silo capacity and install a new modern flour mill.Prima has achieved its present position due to "excellence in product quality, innovation, affordability and delivery". Prima came to Sri Lanka before the country had any investment protection or incentives internationalised through the Greater Colombo Economic Commission and its successor, the Board of Investment. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
